Shares of Umpqua Holdings Corp. spiked Thursday after the Portland, Ore., company reported that its first-quarter earnings rose 19% from the year earlier, to $24.7 million. Earnings per share grew 17%, to 41 cents.
The bulk of the profit came from the $17.8 million it earned on Visa Inc.'s recent public offering; without that one-time gain, earnings would have been down 86% from the year earlier.
The good news for investors, though, was that its asset quality improved as it has reduced its exposure to residential construction loans in its three-state market. Nonperforming assets at the end of the quarter totaled $88.3 million, or 1.06% of total assets, down from $98 million, or 1.18% of total assets, three months earlier.
Umpqua's shares rose 7.4% Thursday, to $15.79.
